The U.S. Agency for International Development is planning a major restructuring of its multibillion-dollar global health supply chain project, which delivers lifesaving drugs and health commodities to dozens of countries.
As USAID prepares to solicit proposals for the next version of the project, the agency’s watchdog has outlined how design and management challenges allowed the current $9.5 billion supply chain contract to run into major problems early in its implementation, which Devex first reported, prompting congressional hearings and investigations.
The Global Health Supply Chain Procurement and Supply Management — or GHSC-PSM — project is the largest in USAID’s history and is implemented by U.S.-based contractor Chemonics International. Chemonics was awarded the contract in 2015 — unseating the organizations that previously managed USAID’s health supply chain efforts — as part of a plan to consolidate two projects into one record-breaking contract with an implementation period of up to eight years.